My Lords, I thank the noble Baroness, Lady Lister, and the noble Lord, Lord Best, for explaining their amendments, which relate to the operation of the welfare system, including universal credit and the benefit cap, and their impact on victims of domestic abuse. The noble Baroness, Lady Sherlock, is absolutely right: just because I am a Home Officer Minister does not mean that I should not and do not engage on these matters.
Amendment 10 seeks to place a duty on the domestic abuse commissioner to investigate universal credit single household payments and lay a report before Parliament within a year of Royal Assent. As I indicated in Committee, and as my noble friend Lady Sanderson said, as an independent officeholder, it should be for the commissioner to set her own priorities as set out in her strategy plan, as provided for in Clause 13. I understand that the commissioner has no current plans to examine this issue in the next year. If this amendment were to be made it would necessarily mean that other
issues which she might have regarded as more pressing would fall by the wayside. Moreover, the way the amendment is drafted arguably prejudices the conclusions of the commissioner’s report and makes it difficult or impossible for her to comply with the duty if those conclusions do not then come to pass. If the aim of this amendment is to secure a particular preordained outcome, I see no benefit in asking the independent commissioner to investigate the matter. She has already embarked on the mapping exercise in relation to community-based services, so there is no contradiction between government Amendment 17 and the concerns we have about Amendment 10.
DWP is committed to doing all it can to support victims of domestic and economic abuse, including giving split payments when requested, easements to benefit conditionality and referrals to local specialist support. However, by default, a core principle of universal credit is that it is a single household payment. Where a claimant is part of a couple and living in the same household, they will need to make a joint claim for universal credit. Many legacy benefits, including housing benefit, child benefit and child tax credit, already make payment to one member of the household, so the way universal credit is paid is not a new concept. Instead, we believe that this reflects the way that most couples can and want to manage their finances—jointly and without state intervention. We have therefore taken a proportionate response, ensuring that universal credit meets both the needs of the many and the most disadvantaged, including victims of domestic abuse.
Recognising that there are circumstances in which split payments are appropriate, we have made them available on request to anyone at risk of domestic abuse. As part of that, it is important that we allow the individual who is experiencing domestic abuse to decide whether they think that split payments will help their individual circumstances. Once that choice is made, the request for such payment can be made in whatever way works best for the claimant, including during a face-to-face meeting or a phone call. Once paid, the larger percentage of a split payment will be allocated to the person with primary caring responsibilities, such as childcare. This is to ensure the health and well-being of the majority of the household. We can also arrange for any rent to be paid directly to the landlord to protect the family tenancy. No information relating to why a split payment has been requested or granted will be notified to the claimant’s partner. In addition to the right to split payment on request, we have also taken measures to encourage payment to the main carer in the family. Evidence suggests that 60% of universal credit payments are made to women, who are usually the main carer. Given this, we have changed the claimant messaging on the service to encourage claimants in joint claims to nominate the bank account of the main carer to receive their universal credit payment.
I hope that noble Lords will see that, although universal credit’s single household payment mirrors the model of the legacy benefits it replaces, much has been done to offer alternative payment arrangements to victims of domestic abuse. However, universal credit cannot solve all the problems of domestic abuse and
split payment is not a panacea. It is crucial to acknowledge that abusive partners may still take money from their victims, whether that is payment of universal credit or any other source of income, including through intimidation, coercion and physical force. Payment to the victim’s individual bank account is no guarantee, with such people capable of learning passwords and taking control of bank cards.
The Government therefore view calls for split payments to all couples claiming universal credit as disproportionate. This would be a fundamental change to the payment structure of universal credit, from a single household payment made to one individual of the benefit unit to payments split between joint claimants by default, rather than made available to those who need this method of payment. It would add very significant cost and complexity. For example, split payments are currently a manual process. To introduce them by default they would have to be automated, at considerable cost and disruption. This would also deflect limited resource from the improvements already prioritised for the universal credit system. Such fundamental change from a single to a multiple-payment model for all, regardless of need, may also put the stability of the system at risk for all 6 million current universal credit claimants, and at a time when numbers have grown significantly in response to the pandemic.
Lastly, the noble Baroness, Lady Meacher, advocated split payment by default, pointing to the Scottish Government’s wish to adopt this method of payment. For the reasons I have set out, that is not the Government’s position. It is also noticeable that the Scottish Government are yet to come forward with firm proposals. I say this not to criticise, but merely to illustrate to the House that this is a complex area in which to design a workable policy. Nevertheless, we will continue to work closely with the Scottish Government to establish the practicalities of delivering split payments in Scotland. Should they come up with a policy capable of being implemented, we will observe their implementation to further understand the impacts, any potential advantages and disadvantages. We would ask advocates of split payment by default to do the same, in a “test and learn” approach, so that future debate on this may be based on practical evidence.
Amendment 68 would require the DWP to assess the impact of welfare reform on victims, and potential victims, of domestic abuse. The DWP already does this, in accordance with the public sector equality duty. An equality impact assessment to support the introduction of universal credit was published in November 2011, and an impact assessment was published in December 2012. Equality impacts have been further considered in developing subsequent plans surrounding the implementation of universal credit. I appreciate the noble Baroness’s intention in proposing the amendment, but I do not think that the additional duty is required.
Finally, Amendment 69 seeks to make victims of domestic abuse exempt from repaying universal credit advances. It is important to note that there can be no such thing as an advance that is never intended to be recovered. Advances are simply an advance of a claimant’s benefit, paid early, resulting in the same amount of universal credit being spread across more payments. It
is, therefore, more appropriate to say that this amendment would effectively create grants or additional entitlement to universal credit solely for victims of domestic abuse. While the Bill demonstrates the Government’s commitment to supporting victims of domestic abuse by introducing additional benefit entitlement, we would effectively be unfairly discriminating against all other vulnerable cohort groups who may be facing substantial challenges.
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Instead of extensively altering the universal credit system, we should look at how else we can support individuals who have to flee from abusive partners. We have already brought forward changes to universal credit that will help claimants manage their debt in a more sustainable way. From April, claimants will have the option to spread 25 universal credit payments over 24 months, giving them more flexibility over the payments of their universal credit award. We are also reducing the normal maximum rate of deductions in UC from 30% to 25% of a claimant’s standard allowance. These changes, coupled with deferrals of up to three months available for advance repayments, mean that all universal credit claimants can take home more of their award and have greater control over their income.
Amendment 72 seeks to provide a period of grace for survivors of domestic abuse, so that they are exempt from the application of the benefit cap for a period of 12 months when a UC claim is being considered. The benefit cap seeks to restore fairness between those receiving benefits and taxpayers, and provides an incentive to move into work where possible. I acknowledge the difficulties that domestic abuse survivors face, particularly when preparing to move on from a refuge, where their benefits are unlikely to be limited by the benefit cap. There are limited examples of periods of grace in legislation. There are considerable challenges to delivering them because people’s circumstances change, and can change again across the period of grace. Accordingly, the Government are reluctant to add to the number of grace periods and the inherent complexity they bring, particularly if they overlap with each other.
Victims of domestic abuse are not afforded easements in the benefit cap policy. Instead, as the noble Lord, Lord Best, mentioned, support is available through discretionary housing payments. Funding for DHPs is provided to local authorities to enable them to protect the most vulnerable claimants. While the allocation of this funding is at local authority discretion, the DWP has strengthened guidance to ensure that individuals or families fleeing domestic abuse are considered a priority group. Support through DHPs will be an advantage in a wider range of circumstances for domestic abuse survivors, due to the flexibilities afforded to local authorities in administering them. Such payments can be immediately available. The Government will make £140 million available to local authorities for the next financial year.
That concludes my remarks. I am not sure if I have reassured the noble Baroness. She had three further questions. She asked whether a DWP Minister would meet with Women’s Aid. I can certainly make that request. She asked for an update on the spare room subsidy judgment. I do not have one, but I shall see if I
can get it for her. She also asked me to raise something with the Secretary of State, which I did not manage to write down. If she can remind me of that, I shall do it. Otherwise, I hope that the noble Baroness will withdraw her amendment.